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Ineos acquires full control of Runcorn salt plant, saving it from collapse

Ineos Inovyn has acquired the remaining 50% stake in the Runcorn salt plant, preventing its closure and potential UK reliance on imported salt.

  • Ineos Inovyn now has full control of the Runcorn salt plant, which went into administration last year.
  • The acquisition is expected to prevent the UK from becoming reliant on imported salt for the first time.
  • The Runcorn site supplies approximately 98% of the chlorine used to treat Britain's drinking water.

Ineos Inovyn, a division of Jim Ratcliffe's chemicals empire, announced on Friday that it has purchased the remaining 50% stake in the Runcorn-based salt plant. This acquisition gives Ineos Inovyn full control of the site, which entered administration last year.

The deal is anticipated to be finalised before the end of 2026 and is expected to prevent the failure of one of the UK's last two salt processing factories. Inovyn had previously indicated that without government support, the Runcorn plant might close due to high energy costs.

The closure of the Runcorn site would have left Britain with only one remaining salt plant, potentially making the UK dependent on imported salt for the first time. Salt-derived chemicals are crucial for water purification and the production of materials for construction, plastics, and explosives. Ineos boss Stephen Dossett stated that the agreement reflects confidence in the site's future and its workforce, and is an important step in strengthening the UK’s national resilience.

The transaction, which is subject to regulatory approval, occurs amidst concerns about the UK's industrial base shrinking due to high energy costs and carbon taxes. The chemicals industry has seen a 20% contraction in the last three years. The Runcorn site's previous operator, Vynova Runcorn Limited, collapsed into administration in December last year, jeopardising around half of the UK's salt production capacity and approximately 90 jobs.

Why this matters: The acquisition prevents the UK from potentially becoming reliant on imported salt, a material vital for various supply chains, including water purification and the production of construction materials, plastics, and explosives.

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